Arnprior, ON – The International Association of Machinists and Aerospace Workers have bucked the national trend of defined benefit pension plan termination or depletion, in its new collective agreement with Arnprior Aerospace (a former Boeing Canada facility).
“I can’t say enough about the resolve and solidarity of the bargaining team and the membership of IAMAW Local Lodge 1542 in facing down the concessionary demands of this employer,” said a proud but tired Bill Shipman, IAMAW Grand Lodge Representative.
“This employer under pressure from a cannibalistic predator Boeing Aircraft, came to the bargaining table looking for outrageous concessionary demands. They sought to eliminate Defined Benefit pensions for all members including new hires, implement an 18 per cent wage cut, overtime and work rule regression not to mention removal of 2 statutory holidays.” When no agreement was reached, the matter went to mediation. The second employer offer, including no Defined Benefit pension for new hires, a 12 per cent wage cut across the board and severe penalties for early retirees; was rejected. The membership voted overwhelmingly in favour of strike action.
“We had one foot out the door enroute to the picket line,” explained Shipman “These people realized what impact acceptance of the last offer would have on their community and they were not having any part of it.”
The result is a new 2-year collective agreement for the two bargaining groups, Maintenance and Production and Office and Technical workers. All employer concession demands were removed, and the Defined Benefit Pension Plan remains in place with new hires included. The new agreement includes Cost of Living Allowance (COLA) increases and the implementation of a new profit sharing plan, which is tied to pre-tax earnings.
“This is the first time in a long while that I recall employer demands to eradicate a Defined Benefit pension plan being stopped in its tracks,” said Shipman. “I hope we can build upon this for our membership throughout North America and sustain defined pension plans for all members of the IAMAW.”
The 400 members manufacture components for the North American aviation industry.
“I can’t say enough about the resolve and solidarity of the bargaining team and the membership of IAMAW Local Lodge 1542 in facing down the concessionary demands of this employer,” said a proud but tired Bill Shipman, IAMAW Grand Lodge Representative.
“This employer under pressure from a cannibalistic predator Boeing Aircraft, came to the bargaining table looking for outrageous concessionary demands. They sought to eliminate Defined Benefit pensions for all members including new hires, implement an 18 per cent wage cut, overtime and work rule regression not to mention removal of 2 statutory holidays.” When no agreement was reached, the matter went to mediation. The second employer offer, including no Defined Benefit pension for new hires, a 12 per cent wage cut across the board and severe penalties for early retirees; was rejected. The membership voted overwhelmingly in favour of strike action.
“We had one foot out the door enroute to the picket line,” explained Shipman “These people realized what impact acceptance of the last offer would have on their community and they were not having any part of it.”
The result is a new 2-year collective agreement for the two bargaining groups, Maintenance and Production and Office and Technical workers. All employer concession demands were removed, and the Defined Benefit Pension Plan remains in place with new hires included. The new agreement includes Cost of Living Allowance (COLA) increases and the implementation of a new profit sharing plan, which is tied to pre-tax earnings.
“This is the first time in a long while that I recall employer demands to eradicate a Defined Benefit pension plan being stopped in its tracks,” said Shipman. “I hope we can build upon this for our membership throughout North America and sustain defined pension plans for all members of the IAMAW.”
The 400 members manufacture components for the North American aviation industry.